Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

heres the G8 performance so far for November .....

as expected the volatility at times on GBP has been breathtaking ....ive had some great sessions on it in November ...and cable has been my main pair by far this month for profitability

my strengthmeters tell me what to trade 24/7 ...and all November roads have frequently lead to cable as the only pair to be trading !

for positional traders the 6/7th November saw RED GBP peaking in its performance

last week has seen a near 350+ pip drop in that currency .........cable has swung nearly 3% so far in November .....ouch !

well we have a support line at moment from late October (shown)

lets see if it holds ......

N

 

[NVP]

ok I have started working cable south guys ...2800 to 2780s in last few minutes

lets see if i can keep working the scalps in this direction

 

[NVP]

NU still a decent resell when offered .........even cable not playing much at moment .....

 

[NVP]

if gove resigns we will get some action

 

[NVP]

im having trouble with my live feeds ...back later

 

[NVP]

hey all

all quiet on the western front at the moment .............it will liven later

G8 volatility is pretty low so far london.......

nothing showing its hand to me so far .....in fact only currency moving is NZD kiwi dollar.....its fell a little from 6am opens.........

NU 6830s to 6820s so far ...........but hardly worth it

N

got the feeds back earlier......ok bit of a dogs dinner so far

im still trying to sell Cable when offered ......but its hard work

in truth the correlation of the G8 is not in sync with my preferred style

as i said earlier (ABOVE) NZD is the sell.....and the sensible trader today would have just sat back and scalped NZDUSD ............a little slooooow motion ...but safe safe safe ...

BUT WHERES THE FUN IN THAT ?.........

N

 

[NVP]

{quote} How many pips represent 1%?

Hi D - hope you are well ...

1% represents a traders capital base and is generally perceived to be a reasonable amount for a trade

so if you had say $10,000 you were using to trade then 1% would be $100 per trade

you then devide the stop loss pips into $100 to get the $ / Pip you trade

as an example when i am scalping i generally am using 1% of a theoretical capital base .....and my stiop loss is max 5-7 pips mainly .....depends on the circumstances

so yesterday i was a little down on 1% per trade as cable was pretty volatile ........lets say 0.75% per trade

and say 5 pips per scalp = 0.15% of my capital base per pip ...

so if you stayed at this pretty conservative level you would need to make 100 / 0.15 = 667 pips to return 100% on capital base (allowing for spreads perhaps a little more

on 1% (more my style) its 100 / 0.20 = 500 pips .......and i use this a lot to benchmark my trading

I should be able to consistently make say 20-30 pips on half decent sessions .....sometimes more , sometimes less .....so theoretically i should be able to deliver 100% return on capital every 15-20 sessions ...........all on average here .....not guaranteed

so if i traded most days in a month and it was a decent month i should be getting around 100% a month .....but again i rarely trade every session in a month

yesterday there were literally hundreds of pips on offer and that can speed up the process !

N

 

[NVP]

note that i will try to take this pippage out of the market in the London session ....if i cant do it during london i will trade the US opens if timing allows .......

or I just trade anyway as i enjoy trading ........theres no rules ....

trade as much or as little as you like .....

a lot of traders say walk away after say 3 consecutively losing trades ......but if you are happy and executing everything correctly why would you drop trades out of your sample size ?......the idea here is that a winning system needs to be executed consistently ....if you stop trading wheres the consistency in that ?...the amount of traders i know that have a poor period then immediately have a superb run ......you have to be in it to win it

 

[NVP]

us open put immediate sell pressure on CAD and GBP ....... been selling cable down from 2860s to 2800s so far ....

i couldnt justify buying Ucad until earliest 3140s up to 3170s so far

N

 

[NVP]

morning all

steady action today ........europeans are bull with nice sells on usd and Yen team

buying cable up from 2830s to 2880s so far
buying EU from 1400 to 1420s so far
buying EJ from 128.50s to 128.90s so far

N

 

[NVP]

tricky today ...

usd and Yen were bear during early London opens....then swung bull since ......gbp is all over the place as well

EJ probably best pair for action .......been selling it from 128.70s to 128.30s so far

messy though this morning .........Cable is now on third direction for me today ....normally i prefer to just go from london opens and not have to switch bias ....

N

 

[NVP]

as stated earlier .......E/J bear a decent one to follow through london so far.....

its again resold down from 126.60s to 128.30s

find the alpha pairs and trade them ...thats all I do guys ...thats all I do

N

well actually i do a little more than that in my strategies ....but you get my meaning

 

[NVP]

Dow session has continued to send usd bull .....steady action selling Euro , CAd and also GBP at times ......pretty steady scalping ....no issues

N

 

[NVP]

hey all

slowish day so far ........

USD and yen have mainly been bearish .....so ive been working european buys into them

EJ been buying from 128.40s to 128.80s so far

EU been buying from 1.1370s to 1.1410s so far

GU cable was a buy but Sterling has dropped bear from around 9am GMT....i need a little more convincing to start selling it due to the whole G8 dynamics at moment ...a more aggressive position would have had me selling cable from 1.2790s to 1.2770s so far

be careful ...yen bear is driving market at moment and is alpha currency
N

 

[NVP]

hey all ...........

as from earlier comments ....yen Bear still driving the market and we have the AUD and NZD on bull side mainly ...........that means the europeans are not really pumping ....slow day

I have continued to work Euro as my main buy currency with yen the sell ....EU bull has been very slow but steady as well ..........

EJ has been rock solid at 128.70s for support
EU rock solid at 1390 support levels as well


GBP is a nightmare today hence i am not on it .....

SHOCK HORROR
YES SOMETIMES I DO NOT TRADE CABLE !!

 

[NVP]

CAD is the buy gang .....Ucad selling ok ......europeans are now selling alongside USD so nothing worth scalping.....

cheers
N

 

[NVP]

morning all ........

choppy action so far .....ive not scalped much at all ...too much noise and bad correlation so far

ok im pretty much just on cable sells and ucad buys at moment .....but again its TIGHT !!!

N

 

[NVP]

because i am trading so much i dont get chances to call exact trades here live ....

ok i would deffo hit cable resells if it breached 2781 at this excact moment ......2783 as i speak

 

[NVP]

now price has drifted to 2786/87 with 9am bar coming .....so i step down .....thats how fast it is ...naturally



thats why it is impossible for me to call on the forums for scalping action

 

[NVP]

todays London opens is a really wicked market and plenty of opportunities for the market to take out stops before it shows its hands

for example i could sell cable at around 2782/81 as already said ....but i can see that its gonna probably whip me back to 2787/88 to take out the scalpers stop positions...

i can either gamble at moment or step out of game till it gets better

thats how you stay profitable gang .....read and realise the situation

later
N